A recent report from the Biden administration on the environmental impact of increasing liquefied natural gas (LNG) exports has the potential to delay President-elect Trump’s efforts to swiftly authorize new licenses for the fuel, according to experts. Brad Crabtree, the Department of Energy’s assistant secretary for the Office of Fossil Energy and Carbon Management, informed lawmakers last week that the report, which evaluates the economic and environmental implications of expanding LNG exports, is expected to be released by mid-December. Under the Natural Gas Act, the DOE is required to determine whether such exports align with the public interest before granting new permits.
While some industry observers view the report as a procedural hurdle that the Trump administration could quickly override, others believe it may provide a foundation for legal challenges from environmental groups. Kevin Book, managing director at ClearView Energy Partners, emphasized the importance of solid documentation for new permits, noting that corporate sponsors are unlikely to invest heavily in projects with precarious approvals. If the report raises concerns about the public interest, the incoming administration might face weeks or even months of delays to produce new studies or reinterpret existing findings to justify approvals.
Jeff Kupfer, president of ConservAmerica and a former acting deputy secretary at the DOE, expressed concern that the report could slow progress on new LNG export licenses. He acknowledged the potential for unfounded criticism from opponents but underscored the need for the Trump team to address comments and ensure compliance with regulatory requirements. However, other experts, like Trisha Curtis, CEO of PetroNerds, were less concerned. Curtis described the report as a last-ditch effort by the outgoing administration, suggesting that any setbacks would likely be manageable under the Trump administration.
The Biden administration implemented a temporary pause on new LNG export permits earlier this year, initiating a DOE review of the environmental analysis process under the Natural Gas Act. This law, enacted nearly 75 years ago, mandates that exports to non-free-trade-agreement countries—constituting 80% of the LNG market—meet public interest criteria. President Biden has made combating climate change a cornerstone of his agenda, with the natural gas pause aligning with broader efforts to reduce fossil fuel reliance.
President-elect Trump has signaled a sharp pivot from these policies. He has pledged to lift the natural gas pause immediately and take sweeping actions to roll back Biden-era climate regulations. On his Truth Social platform, Trump reiterated his commitment to expediting approvals for major investments in U.S. energy production. Karoline Leavitt, a spokesperson for the Trump-Vance Transition, stated that Trump’s victory reflects a voter mandate to lower energy costs, restore energy sector jobs, and prioritize domestic energy production.
The DOE declined to comment on the report or its implications. However, as the transition unfolds, the clash between the outgoing and incoming administrations underscores the challenges of balancing energy production goals with environmental considerations. Whether the report becomes a significant obstacle or merely a speed bump in Trump’s energy agenda remains to be seen.
